Market Direction Is Important –
Updated Chart of the S&P 500 and Secondary Signals
Of our Four secondary indicators under our MTI:
Relative Strength Index (RSI)-Positive
Chaikin Money Flow (CMF)-Positive
MACD- Positive
Money Flow Index-MFI-Positive
More on the Market and the Economy:
The market started the second half of the year with a bang, with the S&P 500 and the Dow closing at record highs on Tuesday. That was repeated on Wednesday, and again Thursday, with both indexes finishing the holiday shortened week by advancing further into uncharted territory.
The market clearly welcomed data showing that the economy added 288,000 jobs in June, bringing the unemployment rate down to 6.1%. Following the jobs report on Thursday, the Dow broke through 17,000 for the first time, and gained 1.3% for the week.
The S&P 500 also advanced 1.3% for the week.
Those gains, once again, were achieved on very light volume. Thursday’s shortened session saw only 3.49 billion shares exchange hands, and the five-day average amounted to 6.29 billion.
Logging record after record, the market has refused to give in to any talk of a possible correction. The S&P 500 has made it over 1,000 days and counting since its last official correction (marked by a 10% drop). This run, which began on October 3, 2011, marks the fifth-longest stretch without a correction for the index since 1928, the longest being a 2,553-day run which ended in October 1997. This is causing some anxiety, and talk is swirling that the market is due for a pullback: on average, the market sees a correction every 18 months.